Staffing 360 Solutions Reports Improved Fiscal Third Quarter and Nine-Month Results

Positive Income from Operations, Net Income and Basic EPS in Q3

NEW YORK, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Staffing 360 Solutions, Inc. (NASDAQ: STAF), a company executing an international buy-integrate-build strategy through the acquisition of staffing organizations in the United States and the United Kingdom, today announced its Fiscal 2021 third quarter and nine-month financial results for the period ended October 2, 2021.

Q3 2021 Overview

• Revenue decreased 2.3% to $47.5 million from $48.6 million in Q3 ’20 (1.7% excluding the disposal of firstPRO).
• Gross profit increased 15.6% to $9.6 million from $8.3 million in Q3 ’20 (28.8% increase excluding the disposed business).
• Income from operations was $0.5 million compared with a loss from operations of $1.8 million in Q3 ’20
  • A result of strong execution in all of our businesses benefitting from gradual strengthening in our underlying markets.
• Net income of $8.7 million realized as compared with a net loss of $2.6 million in Q3 ’20.
• EBITDA grew to $10.5 million from ($0.2 million) in Q3 ’20.
• Adjusted EBITDA increased to $1.5 million from $1.2 million in Q3 ’20.
• Basic EPS was $0.70, up from a loss of $2.34 in the same period last year.

Nine-Month 2021 Overview

• Revenue decreased 2.5% to $147.0 million from $150.7 million in YTD September ’20 (2.8% increase excluding the disposal of firstPRO).
• Gross profit increased slightly by 0.5% to $26.7 million from $26.5 million in YTD September ’20 (16.6% increase excluding the disposed business).
• Loss from operations narrowed to $1.3 million as compared with a loss from operations of $7.4 million in September ’20.
  • A result of better cost management in a very tight labor market.
• Net income of $14.9 million realized as compared with a net loss of $13.4 million in YTD September ’20.
• EBITDA grew to $20.5 million, or 506%, from ($5.1 million) in YTD September ’20.
• Adjusted EBITDA increased to $4.0 million from $3.0 million in YTD September ’20.
• Basic EPS was $1.43 up from a loss of $11.10 in the same period last year.

Brendan Flood, Chairman, CEO and President, said, “I am very encouraged with our ongoing progress and improved results achieved in the third quarter. The general business outlook remains strong and our business is steadily improving. We continue to gain more business, with often increasingly larger contracts for temporary placement.

“As we progress through the economic recovery, we remain vigilant and cautiously optimistic. We anticipate improved revenue and gross profit in Q4 fueled by the pent-up demand we are experiencing. We are focused on gross profit and EBITDA growth, which may at times come at the expense of lower margin revenue. Our balance sheet is steadily improving - debt today is $10.1 million, down from $72.3 million in June 2020, after paying down $62.2 million. I look forward to a strong end of year and to starting 2022 on solid footing,” concluded Flood.

Conference Call
The Participant Dial-In Number for the conference call is 323-794-2423.Participants should dial in to the call at least five minutes before 9:00am ET November 16, 2021. The call can also be accessed "live" online at https://viavid.webcasts.com/starthere.jsp?ei=1506847&tp_key=b6dd6c00d8. A replay of the recorded call will be available for 90 days on the Company's website (http://www.staffing360solutions.com/res.html). You can also listen to a replay by dialing 844-512-2921 (international participants dial 412-317-6671) starting November 16, 2021, at 12:00pm ET through November 19, 2021 at 11:59pm ET. Please use PIN Number 8268827.

About Staffing 360 Solutions, Inc.
Staffing 360 Solutions, Inc. is engaged in the execution of an international buy-integrate-build strategy through the acquisition of domestic and international staffing organizations in the United States and United Kingdom. The Company believes that the staffing industry offers opportunities for accretive acquisitions and as part of its targeted consolidation model, is pursuing acquisition targets in the finance and accounting, administrative, engineering, IT, and light industrial staffing space. For more information, visit http://www.staffing360solutions.com. Follow Staffing 360 Solutions on Facebook, LinkedIn and Twitter.

Forward-Looking Statements
This press release contains forward-looking statements, which may be identified by words such as "expect," "look forward to," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified; consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, our ability to retain our listing on the Nasdaq Capital Market; market and other conditions; the geographic, social and economic impact of COVID-19 on the Company’s ability to conduct its business and raise capital in the future when needed; weakness in general economic conditions and levels of capital spending by customers in the industries the Company serves; weakness or volatility in the financial and capital markets, which may result in the postponement or cancellation of customer capital projects or the inability of the Company’s customers to pay the Company’s fees; the termination of a major customer contract or project; delays or reductions in U.S. government spending; credit risks associated with the Company’s customers; competitive market pressures; the availability and cost of qualified labor; the Company’s level of success in attracting, training and retaining qualified management personnel and other staff employees; changes in tax laws and other government regulations, including the impact of health care reform laws and regulations; the possibility of incurring liability for the Company’s business activities, including, but not limited to, the activities of the Company’s temporary employees; the Company’s performance on customer contracts; negative outcome of pending and future claims and litigation; government policies, legislation or judicial decisions adverse to the Company’s businesses; the Company’s ability to access the capital markets by pursuing additional debt and equity financing to fund its business plan and expenses on terms acceptable to the Company or at all; and the Company’s ability to comply with its contractual covenants, including in respect of its debt agreements, as well as various additional risks, many of which are now unknown and generally out of the Company’s control, and which are detailed from time to time in reports filed by the Company with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Staffing 360 Solutions does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law.

Investor Relations Contact:
Terri MacInnis, VP of IR
Bibicoff + MacInnis, Inc.
818.379.8500 x 2 terri@bibimac.com

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